uploads///iShares Silver TrustSLV Fund Flow

How Funds Were Flowing to Silver in January 2017


Feb. 1 2017, Updated 9:07 a.m. ET

 Silver funds witness inflows

Silver prices have rebounded from the low levels we saw at the end of December 2016. In fact, all four precious metals have seen surging prices in 2017, with gold, silver, platinum, and palladium rising 3.0%, 4.9%, 7.6%, and 9.8%, respectively, YTD (year-to-date) as of January 11, 2017.

The RSI level for silver also rose to almost 48 compared to 34 after the Fed hiked interest rates in December 2016.

A 14-day RSI level of more than 70 indicates a possibility of a downward movement in price. A level below 30 indicates the possibility an upward movement.

The funds flowing into silver have also resurfaced so far in January. In December, we saw investors turning their backs on silver. The iShares Silver Trust (SLV) and the Global X Silver Miners ETF (SIL), both famous silver-based funds, have seen prices rise this year as well.

The iShares Silver Trust (SLV) shrank 74 tons during the past week as prices once again took a steep fall. That saw SLV fall almost 9.0% from near record-high holdings in the last quarter of 2016.
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Mining stocks

Silver mining companies that saw a revival in prices last week include First Majestic Silver (AG), Silver Wheaton (SLW), Goldcorp (GG), and Alamos Gold (AGI). Combined, these four miners contribute about 13.9% to GDX. They’ve risen 21.2%, 16.5%, 20.9%, and 16.8%, respectively, on a 30-day trailing basis.

The fall of the US dollar has been one of the most significant contributors to the rise in precious metals. Silver had its highest close in almost two months, but it may see resistance at the $16.90 mark.


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